Bitcoin Treasury: Surprising Meta Vote Highlights Big Tech Caution
The recent shareholder vote at Meta regarding a proposal to explore adding Bitcoin (BTC) to its corporate treasury reserves sent a clear signal: Big Tech remains highly skeptical of the digital asset for this specific use case. While corporate Bitcoin adoption is accelerating in other sectors, the giants of the tech world are not yet following MicroStrategy’s lead.
Why the Meta Bitcoin Treasury Vote Was Emphatic
At its annual meeting on May 28, Meta shareholders overwhelmingly rejected a proposal to assess Bitcoin as a future treasury reserve asset. The vote was dismissed by a ratio of 1,221 to 1. This isn’t an isolated incident; Microsoft also voted down similar proposals recently.
Corporate treasury reserves are traditionally held in highly liquid, stable assets like cash, money market funds, or short-term government bonds. They serve as emergency funds or for day-to-day operations, not typically for speculative investment. Meta holds around $72 billion in such liquid assets.
According to NYU professor Aswath Damodaran, using treasury funds for Bitcoin is ‘lunacy’ because these reserves are meant for emergencies, not speculation. Duke University finance professor Campbell Harvey echoed this, suggesting that if investors want Bitcoin exposure, they can buy it themselves. He argues that Bitcoin’s volatility makes it unsuitable for a treasury function unless the company’s core business involves crypto. Stablecoins, being pegged and liquid, would qualify better, he noted.
Arguments Against Corporate Bitcoin Adoption in Treasury
The primary argument against holding Bitcoin in a corporate treasury is its price volatility. Unlike stable cash equivalents, Bitcoin’s value can fluctuate significantly, potentially impacting a company’s ability to meet short-term obligations or causing unexpected balance sheet changes.
Skeptics view it as a speculative investment rather than a reliable reserve asset. They emphasize that treasury funds require stability and predictability above all else.
The Case for Bitcoin Treasury Allocation
Despite the skepticism, proponents argue that holding Bitcoin in treasury reserves offers benefits, particularly in a climate of inflation and low interest rates on traditional cash holdings. Cash reserves, like Meta’s billions, often earn minimal interest, effectively losing value to inflation.
David Tawil, president of ProChain Capital, suggested that putting some cash into Bitcoin could offer diversification and act as a hedge against dollar inflation. James Butterfill, head of research at CoinShares, pointed out that even a small 3% Bitcoin allocation has been shown to potentially improve a fund’s risk-adjusted returns (Sharpe ratio).
CoinShares’ survey data shows increasing institutional interest, with average digital asset allocation rising from 1% in October 2024 to 1.8% in April 2025, indicating that the pace of adoption is accelerating.
MicroStrategy Bitcoin Blueprint vs. Big Tech Caution
MicroStrategy became the first publicly traded company to make Bitcoin its primary treasury reserve asset in August 2020. Its stock performance (MSTR) has seen a dramatic increase since then, outperforming many major tech companies. This success has inspired other companies to consider the strategy.
However, as Campbell Harvey notes, MicroStrategy has effectively transformed itself into an active Bitcoin fund. This differs significantly from a large corporation whose core business is unrelated to crypto adding Bitcoin to a traditional treasury reserve. Harvey views MicroStrategy’s move more as a ‘risky venture investment’ rather than a standard treasury function.
Beyond Big Tech: Broader Corporate Bitcoin Adoption Trends
While Meta and Microsoft remain cautious regarding Bitcoin in treasury, corporate adoption is indeed growing elsewhere. At least 72 new companies reportedly adopted Bitcoin this year, including recent moves by Paris-based Blockchain Group and Korea’s K Wave Media planning significant BTC purchases for their treasuries.
Butterfill suggests that some of these moves might be driven more by a desire to boost stock prices than a deep conviction in Bitcoin’s long-term value as a balance sheet asset. A truly strategic allocation requires a long-term perspective.
Major corporations whose core business is outside crypto, like Tesla, remain outliers among large-caps holding Bitcoin. However, the trend among investment managers like Fidelity and BlackRock, who now recommend modest Bitcoin allocations for diversification, indicates a shift in institutional perception.
What Does the Meta Vote Truly Signify?
The overwhelming Meta Bitcoin vote might not solely represent a pure rejection of Bitcoin itself. CEO Mark Zuckerberg controls a significant portion of Meta’s voting power, potentially skewing the result. Also, as Stefan Padfield of the Free Enterprise Project suggested, managers and investors might simply reject proposals that feel like being told what to do, regardless of the underlying asset.
Furthermore, the perception of Bitcoin’s volatility might be outdated. Butterfill pointed out that Bitcoin has shown lower volatility than Meta stock and other FAANG stocks recently. The 1,221:1 ratio might reflect an overreaction or a desire to avoid mandatory consideration rather than a nuanced view of Bitcoin’s current risk profile.
Conclusion: Caution Prevails in Big Tech, but Adoption Continues
Meta’s decisive rejection of a Bitcoin treasury proposal underscores the continued caution among the largest tech firms regarding integrating volatile digital assets into traditional finance functions. While the case for Bitcoin as a strategic investment or inflation hedge resonates with some, its role as a standard treasury reserve asset remains contentious for companies prioritizing stability above all else. The success of MicroStrategy’s different approach and the accelerating corporate Bitcoin adoption outside of Big Tech suggest a diverse landscape where different companies are exploring Bitcoin for varying reasons and with differing levels of risk tolerance.
